DAE.bin is required if you want to rip games to play on a console flashed with LT+ 2.0. As LT+ 3.0 is not available for all consoles, and as some people might choose to stay on LT+ 2.0 for as long as they can (a silly choice IMO), the option is still there in XBC.

For LT+ 3.0 ripping/patching, DAE.bin is now irrelevant and you can ignore that message.